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CLASSIFICATION OF BUDGETS
ACCORDING TO ACCORDING TO ACCORDING TO
TIME FUNCTION FLEXIBILITY
1.LONG TERM BUDGET 1. SALES BUDGET 1. FIXED BUDGET
2.SHORT TERM BUDGET 2. PRODUCTION BUDGET 2. FLEXIBLE BUDGET
3.CURRENT BUDGET 3. COST OF PRODUCTION BUDGET
4.ROLLING BUDGET 4. PURCHASE BUDGET
5. PERSONNEL BUDGET
6. R & D BUDGET
7. CAPITAL EXPENDITURE BUDGET
8. CASH BUDGET
9. MASTER BUDGET
BUDGET
• A PLAN EXPRESSED IN MONEY. IT IS PREPARED AND APPROVED PRIOR TO THE BUDGET PERIOD AND MAY
SHOW INCOME, EXPENDITURE AND THE CAPITAL TO BE EMPLOYED.
• A PREDETERMINED DETAILED PLAN OF ACTION DEVELOPED AND DISTRIBUTED AS A GUIDE TO CURRENT
OPERATIONS AND AS A PARTIAL BASIS FOR THE SUBSEQUENT EVALUATION OF PERFORMANCE.
ZERO BASE BUDGETING
• THE ZERO BASE BUDGETING IS NOT BASED ON THE INCREMENTAL APPROACH AND PREVIOUS FIGURES ARE NOT
ADOPTED AS THE BASE.
• ZERO IS TAKEN AS THE BASE AND A BUDGET IS DEVELOPED ON THE BASIS OF LIKELY ACTIVITIES FOR THE FUTURE
PERIOD.
• A UNIQUE FEATURE OF ZBB IS THAT IT TRIES TO HELP MANAGEMENT ANSWER THE QUESTION, “SUPPOSE WE ARE TO
START OUR BUSINESS FROM SCRATCH, ON WHAT ACTIVITIES WOULD WE SPENT OUT MONEY AND TO WHAT
ACTIVITIES WOULD WE GIVE THE HIGHEST PRIORITY?
CASH BUDGETING
• THIS BUDGET GIVES AN ESTIMATE OF THE ANTICIPATED RECEIPTS AND PAYMENTS OF CASH DURING THE
BUDGET PERIOD.
• CASH BUDGET MAKES THE PROVISION FOR MINIMUM CASH BALANCE TO BE MAINTAINED AT ALL TIMES.
Budgeting

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Budgeting

  • 1.
  • 2. CLASSIFICATION OF BUDGETS ACCORDING TO ACCORDING TO ACCORDING TO TIME FUNCTION FLEXIBILITY 1.LONG TERM BUDGET 1. SALES BUDGET 1. FIXED BUDGET 2.SHORT TERM BUDGET 2. PRODUCTION BUDGET 2. FLEXIBLE BUDGET 3.CURRENT BUDGET 3. COST OF PRODUCTION BUDGET 4.ROLLING BUDGET 4. PURCHASE BUDGET 5. PERSONNEL BUDGET 6. R & D BUDGET 7. CAPITAL EXPENDITURE BUDGET 8. CASH BUDGET 9. MASTER BUDGET
  • 3. BUDGET • A PLAN EXPRESSED IN MONEY. IT IS PREPARED AND APPROVED PRIOR TO THE BUDGET PERIOD AND MAY SHOW INCOME, EXPENDITURE AND THE CAPITAL TO BE EMPLOYED. • A PREDETERMINED DETAILED PLAN OF ACTION DEVELOPED AND DISTRIBUTED AS A GUIDE TO CURRENT OPERATIONS AND AS A PARTIAL BASIS FOR THE SUBSEQUENT EVALUATION OF PERFORMANCE.
  • 4. ZERO BASE BUDGETING • THE ZERO BASE BUDGETING IS NOT BASED ON THE INCREMENTAL APPROACH AND PREVIOUS FIGURES ARE NOT ADOPTED AS THE BASE. • ZERO IS TAKEN AS THE BASE AND A BUDGET IS DEVELOPED ON THE BASIS OF LIKELY ACTIVITIES FOR THE FUTURE PERIOD. • A UNIQUE FEATURE OF ZBB IS THAT IT TRIES TO HELP MANAGEMENT ANSWER THE QUESTION, “SUPPOSE WE ARE TO START OUR BUSINESS FROM SCRATCH, ON WHAT ACTIVITIES WOULD WE SPENT OUT MONEY AND TO WHAT ACTIVITIES WOULD WE GIVE THE HIGHEST PRIORITY?
  • 5. CASH BUDGETING • THIS BUDGET GIVES AN ESTIMATE OF THE ANTICIPATED RECEIPTS AND PAYMENTS OF CASH DURING THE BUDGET PERIOD. • CASH BUDGET MAKES THE PROVISION FOR MINIMUM CASH BALANCE TO BE MAINTAINED AT ALL TIMES.